Which of the Following Is Consistent with an Active Approach

question 17

Multiple Choice

Which of the following is consistent with an active approach to policy?

• A) the natural rate of unemployment being uncertain
• B) wages and prices being relatively quick to adjust
• C) the short-run aggregate supply curve being slow to shift in the presence of a recessionary gap
• D) the size of the multiplier being irrelevant
• E) the aggregate demand curve being slow to shift in the presence of a recessionary gap

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Definitions:

Grapevine

An informal communication network within an organization, where information is often passed through word of mouth.

Communication Work

The effort or activity involved in conveying information or expressing ideas effectively, especially in professional settings.

ERG Theory

A refinement of Maslow’s hierarchy that includes only three needs areas: existence (mostly figure needs); relatedness (needs linked to relationships); and growth (internal esteem needs and self-actualization).

Existence

The state or fact of living, being, or having a presence.